Nigeria Begins Critical Gas Projects To Support 15GW Power Generation

R-L: COO Oando, Ainojie Alex Irune; MD SPDC, Osagie Okunbor; GMD NNPC, Dr. Maikanti Baru; MD Total, Nicolas Terraz and MD NAOC, Fiorillo Lorenzo, during the signing of the Akri-Oguta, Oshi-Ubie and Obgainbiri-Afuo Unitisation and Unit Operating Agreements between the NNPC, SPDC, NAOC, Oando and Total  in Lagos, Monday

Nigeria’s State oil firm, Monday, signed agreements with Joint Venture (JV) partners for the commencement of seven Critical Gas Development Projects (7CGDP) aimed at delivering about 3.4 billion standard cubic feet of gas per day (bscfd) to bridge the foreseen medium term supply gap by 2020.

The JV partners include Shell Petroleum Development Company (SPDC), Nigeria Agip Oil Company (NAOC), Oando and Total E&P.

The 7CGDP is an integral part of the gas development strategy designed by the Nigeria National Petroleum Corporation (NNPC) to leverage the full potential of gas to meet the target of generating at least 15 gigawatts (GW) of electricity by 2020.

Speaking at the event in Lagos, Group Managing Director of the Corporation, Dr. Maikanti Baru, said the projects would not only bridge the projected shortfall in supply upon completion, but would also signal the beginning of the process of closing demand-supply gap in the domestic gas market.

He said NNPC had engaged two World Class Project Management Consultants namely DeltaAfrik/Worley Parson & Crestech/Penspen who will work with NPDC and NNPC JV Partners and other stakeholders to achieve set project deliverables.

He said said the Corporation was working closely with other agencies like the Department of Petroleum Resources (DPR) and the Nigerian Content Monitoring and Development Board (NCMDB), among others, to ensure timely approvals for the project and also ensure that lease renewals requests related to the projects were supported for renewals by relevant agency.

e360 learnt that Shell Petroleum Development Company (SPDC) is handling three out of the seven projects. Mr. Osagie Okunbor, Managing Director of SPDC, pledged his company’s commitment to the successful execution of the 7CGDP.

The 7CGDP include development of the 4.3 trillion cubic feet (tcf) Assa North/Ohaji South field; development of the 6.4tcf Unitized Gas fields (Samabri-Biseni, Akri-Oguta, Ubie-Oshi and Afuo-Ogbainbri); and the development of 7tcf NPDC’s OML 26, 30 &42.

Others include, development of 2.2tcf SPDC JV gas supply to Brass Fertilizer Company; cluster development of 5tcf OML 13 to support the expansion of Seven Energy Uquo Gas Plant; and the cluster development of 10tcf Okpokunou/Tuomo West (OML 35& 62).

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